Lloyd's managing agents providing cover in Iraq have been warned that terrorist attacks against 'soft' targets in Baghdad will accelerate in the build-up to the handover of power in June.
Political risk intelligence specialists Exclusive Analysis - which acts as a consultant to Lloyd's insurers Atrium, Limit and Brit - said attacks on 'soft' targets "are likely to intensify before the deadline for the transfer of power to Iraqis, in an effort to undermine the process".
The level of security in the centre of Baghdad is so high that resistance groups opposed to the US-led occupation are "increasingly attacking targets outside [central Baghdad]".
Last month AIG said it was targeting UK brokers with a 'Solutions for Iraq' proposal aimed at driving up its post-war reconstruction cover in Baghdad and other Iraqi cities. The 'Solutions for Iraq' document details AIG's capability in supplying insurance to companies operating in Iraq. It includes: general and third party liability; construction risk and energy; personal accident and travel; kidnap and ransom; environmental; marine; political risk and surety.
Earlier this year, BPL Global said the market for cover protecting contractors against non-performance of the Iraqi government is expanding. The Lloyd's broker said that cover for non-performance of barter, pre-export, and structured trade transactions secured on Iraqi oil could be bought for premium of around 1.5%-2.4% of the cover limit per annum.